A Quick Guide to Short Sales

A Short Sale or Pre-Forclosure Sale in the mortgage world amounts to an accomodation on the part of the lender in hopes of avoiding or mitigating an impending loss.

There are many ways to lose a home but siging away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale". When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to forclose. However, the foreclosure process is an expensive solution for a lender, one that may be more expensive than simply accepting to take less than the amount that is currently due.

Pre-Foreclosure Sale Eligibility Requirements

• The residence must be owner occupied. (Houses that are rented or vacant are considered on a case by case basis).
• The loan must be at least two months (32 days) delinquent at the time of closing.
• This must be an arms length transaction.
• The mortgagee must be without the resources to bring the debt current.
• Foreclosure must be inevitable.

If you have any questions about Short Sales, give Jeff Jonas a call at 614-989-9968.